Ok, so I might be late in discovering Grooveshark. And while I find it more awesome then Spotify I still cant stop to wonder how it all works. Seems like you can upload whatever you want, no matter if you own the copyright or not. So I tried uploading a few songs and they where available directly to stream. And I was like WTF, do they know if I own the right to this, there was no place I could agree to any licensing term.
THIS was a mystery to me, I needed to know.
The answer was easy, and as usual Wikipedia gave the answer http://en.wikipedia.org/wiki/Grooveshark
This is interesting, they don't really care about asking beforehand if they are allowed to stream, this gotta piss the Beatles lawyers off like hell. They share money from they get from tunneling a sales of a songs via iTunes or Amazon with the person uploading the song in the first place. If you are the artist, you get money for your songs from 2 places.
As a band though, there area lot of opportunities to get noticed, but you have to pay for them.
How do they pay for bandwidth?